Taxation of furnished rentals: the new rules

Rents from the rental of furnished rented accommodation have the particularity of being taxed in the category of industrial and commercial profits (BIC), and not in that of property income, as for unfurnished rented accommodation.

As long as their rents do not exceed a certain threshold, owners of furnished accommodation can benefit from a simplified tax regime, called “micro-BIC”. The point of this diet? It exempts them from the obligation to establish accounts to determine the amount of their taxable profit.

This figure is determined on a flat-rate basis by the tax administration, which applies a reduction to the amount of rent declared, regardless of the reality of the charges incurred.

For rents collected until 2023, despite the changes made “by mistake” by the finance law for 2024, the rate of this reduction remained set at 50% for all “unclassified” furnished accommodation, whether the rental is short-term or long-term. This flat-rate taxation continued to apply up to 77,700 euros of rent collected per year.

For “classified” furnished accommodation (the classification aims to guarantee vacationers a certain comfort) and guest rooms, the reduction rate was 71% and the rent threshold not to be exceeded was set at 188,700 euros. per year.

30% reduction

The Le Meur law promulgated in November 2024 reshuffles the cards, but only for rents collected from 1^is January 2025 (imposed in 2026). For short-term tourist rentals, it lowers the rent threshold not to be exceeded to benefit from the micro-BIC regime from 77,700 euros to 15,000 euros. It also reduces the rate of reduction from 50% to 30%.

For classified furnished accommodation, guest rooms and long-term unclassified furnished accommodation, the rent threshold not to be exceeded is set, uniformly, at 77,700 euros and the reduction rate is set at 50%.

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